Money Management

I have very specific plans for the money in my health savings account. 

A health savings account, or HSA, is one of those accounts I always wanted to have but couldn’t participate in until last year. The reason? HSA eligibility hinges on being enrolled in a high-deductible health insurance plan.

For years, we were spoiled with a health insurance plan that came with a low deductible, or none at all. But last year, our plan changed, so we were able to start funding an HSA. And we can participate this year too, since we have a family-level deductible of $3,000 — the minimum required for a health insurance plan to be HSA-compatible (the minimum deductible for individual coverage is $1,500).

Since we maxed out our HSA last year and have been funding this year’s HSA since the start of 2023, at this point, we have several thousand dollars sitting in that account. But when I got a medical bill the other day, I paid it using my credit card rather than taking a withdrawal from my HSA (not to worry — I can pay off that card in full at the end of the month). And I plan to pay for my remaining healthcare expenses out of pocket this year as long as I’m able to do so rather than take HSA withdrawals.

Now, you might be wondering, “Why on earth wouldn’t you tap your HSA when you have money sitting there for healthcare expenses?” But there’s a very good reason I’m trying my best to leave the money in my HSA alone.

When you have an opportunity to benefit from tax-free growth

Anyone who saves for retirement in a Roth IRA may be familiar with the concept of tax-free investment growth. Well, HSAs work similarly.

When you put money into an HSA and don’t spend it right away, you get the option to invest it. And you’re not liable for capital gains taxes on the money you make in your HSA. Then, as long as you use your HSA funds for qualified healthcare expenses, your withdrawals are tax-free as well.

So here’s my logic. While I have plenty of medical bills now, for many people, healthcare costs soar in retirement. So the longer I’m able to leave my HSA alone, the more opportunity I get to invest my money and grow it into a larger sum. And then, ideally, I’ll have a nice pile of cash to tap at a time in life when my healthcare expenses might be a lot higher.

Remember, unlike flexible spending accounts, HSAs do not require you to use up your balance every year. Those funds can be carried forward as long as you like, so if you’re able to cover your healthcare expenses out of pocket, it’s best to leave that money alone and let it grow.

It pays to leave your HSA alone

If you have funds in an HSA for healthcare spending and money is otherwise tight, then you may want or need to take HSA withdrawals to cover your near-term medical bills. You shouldn’t, for example, have to carry a credit card balance forward and pay interest on it when you have money set aside for medical spending.

But if you can use a credit card to pay for medical costs and then pay off that card by the time your bills come due, then leaving your HSA untapped is a good bet. If you go this route, you may be amazed at how much money you’re able to accumulate in your account over time. And once you reach your senior years, your retired self might thank you for having saved up all that money.

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Do airport lounges live up to the hype? Here’s what you can expect. 

Airport lounge access is the kind of perk that immediately catches your eye. Instead of overpaying for food and struggling to find a seat near your gate, you could pass the time in a luxurious lounge, with free food and drinks. While these lounges used to be reserved for first-class, and sometimes business-class travelers, many travel credit cards now offer complimentary lounge access.

You may be wondering if these lounges are as good as they seem, or if they’re completely overrated. This is an especially important consideration if you’re thinking about getting a travel credit card for its lounge access.

I’ve been to quite a few airport lounges in several countries. Although every lounge is different, when you’ve seen enough, you get a pretty good idea of what they’re like. To help decide if this perk will be worth it for you, here’s a firsthand look at what it’s like to visit airport lounges.

They’re great for relaxing before a flight

The highlight of airport lounges is that they’re a lot more comfortable than the rest of the airport. They normally have plenty of couches, chairs, tables, and other types of furniture for you to use. Many have dark, quiet spaces for travelers who want to take a nap, and nicer lounges may also have showers and even spa services.

In addition, some airport lounges have fantastic views of the runway. If you like to watch planes take off and land, you’ll be in for a fun time at these lounges.

Lounges tend to be calmer and less noisy, for the most part. That’s nice if you want to work, read, or watch TV on your tablet. Regardless of how you pass the time, an airport lounge definitely beats the boarding area in terms of comfort.

Crowds can be an issue

The biggest downside with airport lounges, especially in recent years, is the crowds. Lounges are far from exclusive, since so many credit cards offer access. There are several ways this can dampen the lounge experience:

There can be long lines to check in to popular lounges.If a lounge is at capacity, you’ll need to put your name on a waiting list.In packed lounges, service is slower, and seating options are more limited.

How busy it is depends mostly on when you travel, but the popularity of the lounge and plain-old luck also play a part. If you have a red-eye flight, lounges probably won’t be too occupied. Mornings can be hit or miss. Afternoons and early evenings are when lounges can get packed.

Food and drink quality varies quite a bit

Airport lounges with great food and drinks are few and far between — but they’re out there. Centurion Lounges by American Express are known for offering higher quality dining than most other lounge brands. Some airlines also offer impressive meals in their lounges for international travelers.

By and large, most lounges have food that’s just okay. If you’re looking at a card with a Priority Pass membership, which is the most common lounge program offered as a credit card perk, the dining probably won’t be the best. It’s often the basics, like breads, meats, cheeses, and sweets. And the alcohol usually isn’t Dom Perignon, but at least it’s free.

There are exceptions. Priority Pass does have approximately 1,300 lounges, after all. I’ve been in Priority Pass lounges with much better food than normal, and some that had nothing appetizing. Unless the lounge is known for its food, I’d recommend you temper expectations and consider bringing your own snacks. If a nice meal is the priority, then an airport restaurant could be the better choice.

You need some time to make the most of them

It’s best to get to the airport early, or to have some time on a layover, if you’re planning to visit an airport lounge. The point is to relax and have a better experience than you would’ve going directly to the gate.

Try to have at least 45 minutes or so if you’re going to visit an airport lounge. Any less than that, and you’re cutting it close. It may take five to 10 minutes to check in and decide where you’re going to sit. Getting food and drinks could take just as long. If you only have half an hour to spare, that could leave you with 10 to 15 minutes to eat, while probably checking your flight every few minutes to see if it’s boarding yet.

The bottom line

Airport lounges are almost always better than the alternative. They’re comfy, have plenty of space, and you can eat and drink to your heart’s content. I’ve found lounge access to be a valuable benefit that I use often, and it saves me plenty of money on food and drinks.

Whether lounge access is worth it for you depends on your travel habits. As you’d imagine, it’s more valuable the more often you fly. If you take several flights per year, then access to airport lounges could be nice to have.

The type of lounge access also matters. There are many credit cards with airport lounge access, and they don’t all offer the same thing. Some offer a Priority Pass membership, whereas airline credit cards may offer access to an airline’s own lounge program.

Before you apply for a card, get all the details on the lounge access it offers. See if it provides access to lounges at airports you visit often. That’s going to make all the difference in whether it’s really beneficial for you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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One lesser-known perk could make your shopping much easier. 

Some kids (and adults) are more particular than others when it comes to eating. But if you have picky eaters in your family, you know what a challenge feeding them can be.

This especially holds true these days. The cost of food prepared at home (meaning, groceries) was up 11.8% on an annual basis as of December. So you may be looking to make some changes to your normal shopping routine to cut back on costs and lower your credit card bills. That could mean forgoing some of the more expensive brands you’re used to buying and replacing them with less expensive alternatives.

If you have a Trader Joe’s nearby, you have a prime opportunity to save some money in the course of your grocery shopping. That’s because Trader Joe’s is known for its competitive prices.

But if your family isn’t used to Trader Joe’s products, the picky eaters in your household might give you some pushback if you bring home a grocery haul that’s loaded with items they aren’t familiar with. And you could end up wasting money if you buy products that your family members refuse to eat. But actually, thanks to one lesser-known Trader Joe’s policy, that doesn’t have to be an issue.

When you can try before you buy

Trader Joe’s is a business that prides itself on great value and excellent customer service. To this end, its employees tend to be extremely helpful — and that extends to letting you try out products in the store before you buy them.

Now, Trader Joe’s doesn’t necessarily advertise this perk. But if you ask to try something on the shelves, you should expect a store associate to say yes.

This happened to me a few years ago. Because the closest Trader Joe’s to my house is about 30 minutes away, I only shop there once a month. Meanwhile, I had taken my kids to our local Trader Joe’s to stock up on granola bars, only to our dismay, we learned that our favorite type had been discontinued since our last visit. When I asked a Trader Joe’s employee if there were any leftover boxes in the back, they checked and confirmed that they were all sold out.

But then, that employee walked my family over to the granola bar area and began opening boxes for my kids to try. We found a few alternatives we liked. And when I offered to pay for those opened boxes, the Trader Joe’s associate refused to take my money and said that their policy is that you can always try out a product before purchasing it. Who knew?

An option worth exploring

The danger of shopping for picky eaters is spending your hard-earned money on food, bringing new products home, and having them instantly rejected. But the beauty of shopping at Trader Joe’s is that you can try out different items and get your kids’ seal of approval before swiping your credit or debit card at the checkout counter. That could save you a lot of money at a time when food costs are so high.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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